Private Notice Question

To ask the Honourable Minister of Agro-

Industry and Food Security

Whether, in relation to the planned Central

Wholesale Market at Belle Rive, he will

a) table a copy of the detailed feasibility

study;

b) give the estimated total construction cost

and annual running costs, stating how these

will be financed;

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c) the types and quantum of user fees to be

charged; and

d) when construction works works are

expected to start and when is the market

expected to begin operations?

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Madam Speaker

The National Wholesale Market Project was

enunciated in the Government Programme

2012-2015 to improve access to markets and to

provide adequate wholesale and auction

facilities.

2. There are presently 3 regional auction

markets, namely at Vacoas, Port Louis and

Flacq. These auction markets are, however, not

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responsive to customer needs for the following

reasons:

(i) The markets are operating without any

proper infrastructure thus severely

impacting on the trade of fruits and

vegetables during adverse climatic

conditions;

(ii) There are no storage facilities for sellers

and all fruits and vegetables have to be

sold on the spot thus resulting in

fluctuation in prices;

(iii) There are inadequate parking facilities

for both sellers and customers thus

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 leading to severe traffic congestion in the

vicinity;

(iv) There are no proper sanitation and

hygienic conditions prevailing in these

markets; in fact vegetables and fruits are

being offered for sale on the ground and

on roads.

(v) There is no transparency in the workings

of the current bidding process employed

within these auctions markets.

(vi) There is no security, especially at the

Port Louis Auction Market at Trou

Fanfaron and planters who have to call

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 there late at night or early morning with

their products are often attacked and

their goods and money stolen.

3. The objectives of the National Wholesale

Market are to;

(i) construct and create the necessary

infrastructure for the handling of fruits

and vegetables, post-harvest, for onward

sale, fully compliant with all existing

relevant legislation and agricultural and

food standards;

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 (ii) create a modern market yard facility with

all relevant procurement, marketing and

support networks;

(iii) put in place a fair and transparent

mechanism for price setting so that

planters might get the best price for their

produce;

(iv) provide a modern and accessible market

information system on the evolution in

the price of the produce concerned;

(v) have a modern, fair and transparent

marketing infrastructure fully compliant

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 with the Food Act and other agricultural

standards for the community; and

(vi) be commercially oriented and

sustainable.

4. Some 100,000 tons of vegetable and fruits

are produced annually, 60% are sold through the

3 regional auction markets and farmers obtain

only 30 to 40% of final retail price as a return.

With the setting up of the National Wholesale

Market, producers of fruits and vegetables will be

able to secure better returns for their produce.

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5. Tenders for consultancy services for the

setting up of the National Wholesale Market

were launched by the AMB in June 2013 and the

contract was awarded to Cabinet Gressard

Consultants of France in January 2014. The

Report of the Consultants was submitted in April

2014.

6. I am informed that in the context of that

exercise, the Consultants had extensive

consultations with the auctioneers as well as the

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planters and other stakeholders including

supermarkets and visited the three auction

markets at Port Louis, Flacq and Vacoas to take

cognizance of conditions prevailing thereat.

7. The Consultants have recommended the

reorganization of wholesale marketing of fruits,

and vegetables at national level through the

creation of concentration of volumes in a single

place for better efficiency, synergies and cost

sharing between operators, better transparency

and modern and adequate premises for the

whole fruits and vegetables food system. The

other salient recommendations are inter alia;

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(i) The transfer of all three auction markets at

Port Louis, Vacoas and Flacq in a single

place equipped with modernized installation;

(ii) The possibility of producers to use a specific

marketing place so that they could sell

directly to retailers and restaurants;

(iii) The supply of modern warehouse to attract

store chains, wholesalers and importers for

expanding and modernizing their business in

the wholesale market and the provision of

services such as agricultural inputs and

banks;

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(iv) The improvement of all aspects of the

marketing of fruits and vegetables through

the promotion of the normalization of

products, standardization of packing, issue

of invoices and homogeneous content of

boxes;

(v) The provision of 8 ha of land and an

additional 5 ha for future expansion of

logistical activities along the new M3

motorway near Verdun for the setting up of a

National Wholesale Market of an extent of

around 12,100 m2. This site has been

identified by the Consultants as it is located

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 near the highway and is connected to the

round-about coming from Ebene. Moreover,

it is easily accessible to all users and is

relatively flat and can be easily developed;

(vi) The construction of the National Wholesale

Market in two successive phases together

with provision for a toll gate and 27.500 m2 of

parking;

(vii) The establishment of an Investment

Company through a Public Private

partnership for the investment of around Rs

345 M for the implementation of the project;

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(viii) The creation of a separate State

Management Company in partnership with

the Wholesale Market Operators

organizations for participation in the

management of the Wholesale Market;

(ix) The collection of toll and rents for the

maintenance and services of the National

Wholesale Market;

(x) The enactment of an appropriate legislation

to regulate the activities of the National

Wholesale Market; and

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8. The project would be managed by the

Agricultural Marketing Board and the cost of its

implementation was estimated by the

Consultants at Rs 345 million.

Madam Speaker,

9. When I assumed office as Minister, I was

informed that the site earmarked for the project

at Verdun was prime land belonging to the Sugar

Investment Trust and might not be released for

the project. An alternative site was identified at

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Five Ways, Wooton, which is also suitably

situated for such a project.

10. An open bidding exercise for consultancy

services for the setting up of a National

Wholesale Market was launched on 13 May

2016. In November 2016, the contract was

awarded to Studio Valle Progettazioni

Professional Association and the contract was

signed on 13 March 2017 for the total amount of

Rs 11,655,000.

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Madam Speaker,

11. I would also like to inform the House that a

Stakeholders Consultative Meeting on the

setting up of the National Wholesale Market

Project was held on 3 September 2015 at

Boname Hall, Reduit which I personally

attended. Necessary information on the project

was shared with the stakeholders present which

included Officials of different Ministries and

Departments and of parastatal bodies as well as

auctioneers and representatives of planters from

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all over the island. The persons present

particularly the auctioneers were given the

opportunity to ask questions and necessary

clarifications were given to them.

Madam Speaker,

With regard to part (a) of the question, I am

tabling a copy of the detailed feasibility study

carried out in 2014 by Cabinet Gressard

Consultants of France.

Regarding part (b) of the question, I am advised

that the project cost is now estimated at around

Rs 370M. The project will be wholly financed

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under the line of credit with the Government of

India. The market is expected to generate

income to the tune of Rs 22 M annually. As

regards the annual operating cost, same is

expected to be around 15M and will be financed

as follows:

Income from growers section( toll fee) Rs

1.4M

Rent from stall at auction section Rs 9.6M

Rent from warehouses Rs 10.955M.

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With regard to part (c) of the question, the fees

to be charged, as recommended in the feasibility

study, are as follows:

Toll fees - ranging from Rs 100 to Rs 1,000

per trip.

Rent of stalls(planters market) at the rate Rs

100/ day.

Rent of auction stalls which will be Rs

300,000/ year.

Rent from warehouses Rs 4,200/ m2 / year.

However, these fees are still being examined

and no final decision has been reached thereon.

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Regarding part (d), tender for design,

construction and supervision has been awarded

on 13 March 2017. Tender for construction

works is expected to be launched in October

2017. Award of contract will be effected around

first week of January 2018. Construction works

are expected to last for some 18 months. The

project is planned to be completed by June 2019.

The market will therefore become operational

after that date.

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